As more and more governments hope to use cryptocurrency profits, the Austrian authorities have expressed their intention to tax the proceeds of digital asset investments, just like the proceeds of stocks and bonds. This move is expected to increase trust and access to cryptocurrencies.
Austria imposes a capital gains tax on Bitcoin to make cryptocurrency more accessible
The Vienna government stated that its goal is to treat investments in cryptocurrencies such as Bitcoin equally, and announced that it is considering a 27.5% tax on crypto assets, which is currently used to tax capital gains from traditional stocks and bonds. Austria intends to use this measure as part of a broader tax reform to be carried out next year.
Bloomberg pointed out that the news came as more and more countries in the world are exploring ways to tax the income generated by the expanding crypto asset market. Just recently, the total market value of the crypto economy exceeded $3 trillion, as Bitcoin.com News Report, And it is likely to continue to grow.
in a statement On Tuesday, the Austrian Federal Ministry of Finance issued a statement stating that “currently, compared with traditional stocks and bonds, there is still an imbalance in the regulation of cryptocurrencies.” It also insisted that the country’s new tax framework will be the first in the EU to include The taxation framework of Bitcoin, etc., and to ensure that fair conditions are provided for investors of different asset classes. The official elaboration:
In the process of tax reform, we will take a step towards equal treatment to reduce distrust and prejudice against new technologies.
The department described regulatory measures as an important step to make crypto-related financial products more accessible. “We are not only a pioneer in Austria, but also a pioneer in Europe,” said Austrian Finance Minister Gernot Blümel.
According to the document, the tax liability will take effect on March 1, 2022, and will only apply to cryptocurrencies or “new assets” purchased after February 28, 2021. The previously acquired digital currency, the “old assets”, will not be subject to the new tax law.
In the latter case, Austrian taxpayers should refer to general tax regulations and report crypto gains as speculative trading income if the crypto gains occur within one year of purchase.
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